International arbitration often concerns significant financial stakes and, at times, situations hinting at illegal acts including corruption and the movement of unlawfully obtained assets. The role and responsibilities of arbitrators in such scenarios, specifically those where they might be conscious of such illicit activities, has recently stirred discussions and critique. Key among these is a notable example adjudged by a lower English court, which closely scrutinized and subsequently overturned a substantial arbitration ruling against Nigeria.
In the judgement of the Federal Republic of Nigeria v. Process & Industrial Developments (P&ID), handed down on Oct. 23, 2023 by Justice Robin Knowles of the Business and Property Court of the High Court of Justice in London, two arbitration awards (on the merits and on quantum) aggregating to $11 billion were rejected as infringing Section 68 of the Arbitration Act 1996. The court disallowed the enforcement of these awards on the grounds that they were “obtained by fraud . . . and [because] the way they were procured was contrary to public policy.”
For further details on this topic, legal professionals can refer to the original commentary on the role of international arbitrators, made available here.